netease cloud music

A nighttime shot of Hangzhou, where NetEase Cloud Music is based. Photo Credit: Kana Toyama

NetEase Cloud Music has posted mixed H1 2025 financials, including a year-over-year slip in overall revenue but, thanks in large part to subscription gains, solid core streaming growth.

The Tencent Music rival shed light on its half-year showing today, identifying total revenue of CNY 3.8 billion (currently $529.2 million). That sum represents a 6% or so decline from the identical six-month stretch in 2024.

But as mentioned, streaming revenue spiked (to the tune of a 15.9% YoY improvement) to $417.8 million/CNY 3 billion during the newer period. Within the same category, subscription’s contributions jumped roughly 19% YoY to $348.2 million/CNY 2.5 billion, the company indicated.

“We rolled out various premium offerings,” Cloud Music elaborated of the subscribership results, “including expanded content and innovative features, as well as broadened membership benefits such as functional tools, social features and dress-up privileges [IP-themed music players and skins, that is].”

The streaming company explored these fresh features, benefits, and tools in relative detail during the appropriate earnings call. In a nutshell: Cloud Music is said to be optimizing recommendations, enhancing the quality of playlists, improving its layout, and doubling down on its superfan-side presence.

Capitalizing on the comparative licensing flexibility afforded to China-based streaming platforms, the service is in the business of creating in-house music as well.

The DSP further reiterated its recent “AI Singing Assistant” upgrade; now, the tool “enables users to create music videos with a single click,” per Cloud Music.

“We also launched the AI Magic Player,” the platform proceeded, “which utilizes AI to transform user-uploaded photos into custom music player backgrounds, again, with just one click. Additionally, we continued to upgrade member-exclusive audio quality and sound effects, delivering an even better listening experience.”

Back to the hard numbers behind the entity’s H1 2025 performance, Cloud Music disclosed $119.8 million/CNY 859.8 million in revenue attributable to social entertainment sources including livestreams – down about 43% from H1 2024.

“The decrease was mainly due to a more prudent operational approach for social entertainment services,” the company relayed here, “along with a focused emphasis on core music business.”

All that said, Cloud Music pointed to H1 2025 net profit of $261.8 million/CNY 1.88 billion, up north of 130% from H1 2024. Even so, the market doesn’t seem thrilled with the overall half-year results; shares (HKG: 9899) parted with nearly 5% of their value today to finish at $34.50/HK$270.20 a pop.

The slip starkly contrasts the post-earnings stock-price boost of Tencent Music (NYSE: TME), shares in which topped $26.50 apiece earlier this week. While not quite a record high, the value is TME’s largest since early 2021.